In other FinTech news, AxiomSL gets into education, and Tradeweb gets ready for MiFID II.
SS&C Survey Focuses on Client Reporting
Investor clients are demanding more data from financial services firms but many firms are still relying on manual processes to pull together reports, according to a report sponsored by SS&C Technologies, a financial services software and services vendor.
The survey results uncovered that while 100 percent of respondents say that client reporting is important, “the majority (75.5 percent) stressed that it was ‘extremely important’ to their firms’ acquisition and retention strategy,” according to SS&C officials.
“Despite the impact of reporting’s role on the business, the study also revealed that creating reports is primarily achieved via manual processes (31 percent), as opposed to a developed in-house system (28 percent), a vendor system (26 percent), line of business system (7 percent) or outsourcing to a third party (8 percent),” SS&C officials report.
The attendees of the Summit for Asset Management conferences in New York and London took part in the survey.
“The survey results confirm that in this age of increased client demand for investment transparency and context, client communications have emerged as a critical function for investment management firms,” says Christy Bremner, senior vice president, SS&C Institutional and Investment Management, in a prepared statement. “Despite this reality, many firms still follow a mostly manual process that results in outputs that aren’t personalized to individual needs. Firms need to equip their advisors and customers with intelligent investment information to maintain and retain their client base.”
The survey also uncovered that client experiences “shaped by daily interactions with digital platforms like Amazon, Facebook and Netflix,” is raising expectations and causing some to think that sending a printed quarterly report through the mail is not dynamic enough to meet the needs of today’s digitally-native investors.
“Adox Research’s upcoming 8×8 Survey on Client Communications starts from the reality that static quarterly reports are becoming obsolete, and more clients now prefer to access information through online portals that give them more flexibility and control,” says Gert Raeves, research director at Adox Research in a prepared statement. “Client communications that are built around a high-quality user experience are rapidly becoming the best-practice standard. Asset managers must focus on customer experience as well as UI [user interface] if they want to provide a new generation of tech-savvy investors with more responsive, customizable, and dynamic reporting options.”
AxiomSL Launches Regulatory Education Program
AxiomSL, a regulatory reporting, risk and data management solutions vendor, has launched a program to help asset management firms and broker-dealers “clarify issues related to the shifting regulatory environment,” according to company officials.
“In speaking with our clients, we found that asset management and broker-dealer firms are having a particularly challenging time navigating the opacity surrounding potential changes to the regulatory landscape,” says Alex Tsigutkin, global CEO at AxiomSL, in a prepared statement. “Once we helped these firms become conversant with the ‘new normal,’ and ensured their compliance, we decided to make our intelligence readily available to all asset management firms and broker-dealers.”
The content-driven program offers “a succession of ‘In the Know’ briefs, an ‘Explainer Series,’ a COO [chief operating officer] Supper Club, and a blog program,” officials say. “All of the materials are written in understandable, jargon-free English, and include brief analyses of the regulatory environment, how specific rules or rule changes may impact asset management firms and broker-dealers, steps these organizations should take in order to be compliant, and the dates by which compliance is required,” according to the company.
“Financial entities should expect a review and possible revision of every rule enacted by the prior administration, an increase in targeted enforcement, and enhanced coordination of regulatory agencies in the pursuit of common regulatory mandates, including cybercrime, money laundering, bid-rigging and insider trading,” adds Bruce Runciman, executive director at AxiomSL.
FCA Approves Tradeweb’s APA for MiFID II Trade Reporting
The U.K.’s Financial Conduct Authority (FCA) authorized Tradeweb’s Approved Public Arrangement (APA) trade reporting facility, effective for the Jan. 3, 2018 MiFID II deadline, officials say.
“Tradeweb launched its APA-early facility in December last year to enable firms to connect and test well ahead of MiFID II implementation,” officials say.
“The Tradeweb APA already has commitments to participate from a significant number of sell-side firms representing an estimated 60+ percent of OTC [over-the-counter] non-equity trading volumes,” officials add.
“Our APA service has already received support from a significant number of leading financial institutions. More recently, buy-side firms have shown particular interest in our ‘assisted reporting’ service, which helps them comply with post-trade reporting obligations without having to set up direct connectivity,” says Simon Maisey, managing director, global head of business development at Tradeweb, in a statement.